Key Insights
- Avalanche (AVAX) price is attempting to break the $27 resistance after a strong rebound earlier in the week.
- Despite recent volatility, technical indicators show that bullish dominance is rising.
- A successful breakout could open the path to the $37 and $65 targets.
As of late, AVAX price has become one of the strongest-performing assets in the crypto market. This price action came after the cryptocurrency slid by nearly 10% during yesterday’s market-wide dip.
As of writing, Avalanche has bounced back with as much as a 6% gain. It is now making its fifth attempt to break the $26 resistance.
AVAX Price Targets $26 Resistance
AVAX price moves inside a descending parallel channel in the weekly chart. This has happened since reaching its cycle high in March of last year. The coin found support in April and formed a higher low before reclaiming the $20 level.
This said, Avalanche breaking above the channel’s midline at $26 would confirm this change. It could trigger a strong move upward.
The wave count analysis indicates that AVAX is in wave three of a new five-wave rally. This is historically the fastest phase of any bullish trend.
Short-term targets from this pattern point to $74 and $110. However, the most crucial hurdle sits at around the $26 level. According to the charts, the Relative Strength Index (RSI) has crossed above 50.
Also, the MACD is close to turning positive. These signals indicate that buying pressure is becoming positive. If AVAX price clears $26, it could shoot upwards fairly quickly, towards new highs.
Avalanche Technical Picture
Despite recently crashing to around $24, Avalanche still seems strong from a technical perspective. The MACD histogram shows bullishness.
On the other hand, the RSI reading of 53 indicates that the asset is currently in neutral territory. In other words, the AVAX price isn’t under bullish control yet.
However, it is not under bearish control and still has room to climb from current price levels. The Bollinger Bands show that the price is trading in the upper half of the range. Also, a possible upside of 8% could result before the next technical ceiling is hit.
Analyst Ali Martinez also drew attention to this $27 price level in a recent update on X. He noted that a break above this Avalanche price level could open the door to a pump towards $37.
On the bottom side, support lies at $20.57. This is a price level that has repeatedly attracted buyers in the past. However, the first strong resistance zone is on the upside $27.38.
Avalanche’s Filecoin Partnership Boosts Market Outlook
Another driver of the AVAX price action has recently been its new partnership with Filecoin. The collaboration between both has launched a new on-chain data bridge. This links Avalanche’s C-Chain to Filecoin’s storage network.
This integration means that Avalanche’s fast transaction speeds can now be combined with Filecoin’s secure and verifiable data storage.
Businesses can now store Avalanche-generated data directly on Filecoin with on-chain verification. This does much to improve both security and regulatory compliance.
Over on the speculative side, open interest in Avalanche derivatives has risen by 4.05% to $768.65 million. Coinglass data reported this.
On the other hand, trading volume is up 4.46% to $1.46 billion. This indicates that more traders are looking for a comeback and expecting a breakout soon.
If Bitcoin holds itself steady and influences the altcoins positively, Avalanche could see stronger price action on the speculative side.
A confirmed break above the $26.59 zone would be the first bullish trigger. There, AVAX price targets of $55 and $65 are expected to become more realistic.
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